China's Chengdu Tianqi launches $803-mn bid for Australia’s Talison Lithium

China's Chengdu Tianqi Industry Group Co yesterday launched a C$806 million ($803 million) bid for Talison Lithium Ltd, topping a friendly C$724 million offer from Rockwood Holdings Inc.

Tianqi has made the C$7.15-a-share offer through its subsidiary Windfield Holdings Pty. Its offer is 65 cents higher than the bid from US-based chemical producer Rockwood and is at a premium of 65 cents per share, or 10 per cent to Rockwood's current offer price.

Tianqi said that its offer includes signed commitment letters for funding the acquisition from China Development Bank and an ADM Capital advised lender.

Tianqi, which specialises in lithium, and mining industry and agriculture machinery, last week said that it had acquired a 15 per cent stake in Talison Lithium and was planning to table an offer.

Based in Perth, Australia, Talison is a leading global producer of lithium with projects in Western Australia and Chile. It operates the largest open-pit mine for lithium with the highest grade ore in the world, which are used for producing battery-grade lithium for electric vehicles.

Talison also mines for technical-grade lithium used in batteries for consumer electronics, electric bicycles, buses aerospace alloys, wind turbines, glass and ceramics.